Announcement of IDA Approves Credit of Five Million US Dollars to Assist Preinvestment Fund in Nicaragua on December 18, 1980

. . . . FOR IMMEDIATE RELEASE I World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/24 December 18 1 1980 IDA APPROVES CREDIT OF SDR 3.9 MILLION ($5 MILLION) TO ASSIST PREINVESTMENT FUND IN NICARAGUA The International Development Association (IDA), the World Bank's af- filiate for concessionary lending, has approved a credit of SOR 3.9 million ($5 mi11ion) to Nicaragua to assist a preinvestment fund project which will help generate both public and private sector investment projects. The project's main objective is to assist the newly established govern- ment institution, Financiera de Preinversion (FINAPRI). FINAPRI is charged with the task of financing and helping undertake preinvestment studies for • building up a pipeline of projects, necessary to stimulate economic activity and to reshape Nicaragua's economy. With an estimated total cost of $6.2 million, the project provides for the funding of consultant services to prepare high-priority investment proj- ects in key productive and social sectors. It also provides for technical assistance to FINAPRI and its borrowers. The proceeds of the credit to the Republic of Nicaragua will be channeled through the Ministry of Finance to FINAPRI on standard IDA terms. IDA credits are for 50 years, including 10 years of grace. They carry no interest, except for a charge of 3/4 of 1% for administrative costs. NOTE: IOA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SOR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit . •